This invention is directed generally to loan calculation system, and, in particular, to a reverse mortgage loan calculation system and method using look-up tables.
Mortgage products have taken many forms in the prior art. Among the popular types of mortgage products are a conventional mortgage where an individual receives money in exchange for a mortgage, which includes a promissory note to the lender, as well as providing the lender with a security interest in the underlying collateral. In most cases, the individual's home is the primary collateral.
A home equity loan is an additional type of collateralized loan. The home equity loan or home equity line of credit normally provides an individual with the ability to obtain additional capital, while again providing a promissory note and a second security interest in the underlying collateral. In each case, the owner of the asset enjoys the asset while a security interest in the asset is given to a lender.
U.S. Pat. No. 5,083,270 is directed to a method and apparatus for releasing the value of an asset. The program provides for an interest-free mortgage to be taken against a secured asset for a promissory obligation by a participant to pay a sum certain on death of the participant. This system is developed as a fund which derives income from a payment of obligations as participants die, thereby funding distributions to other participants that are living. Eligibility into the system is determined based on the value of pledged assets with respect to the amount against which they are pledged.
Thus, it is known to loan money to an individual so that the borrower can obtain money from an asset that the owner still enjoys during his/her life, but at death, the asset is turned over to the loan provider.
It is desirable to provide a loan calculation system and method which allows a loan officer in a financial institution to change many different variables required in considering whether to lend money, so that a customized loan may be provided. In particular, an individual can obtain upfront income, line of credit income, or tenure payments, and upon entry of certain fixed information, the loan officer may vary a plurality of variables to provide the desired customized loan structure.